The deal with the International Monetary Fund provides for “the repayment of the loan capital over a period of up to 10 years with a grace period of four years and six months,“ according to a decree signed by Milei and published in the official gazette after midnight on Tuesday.
The sum borrowed would be used to cancel treasury bills held by the central bank (BCRA) and to pay obligations under the IMF's EFF program, the decree says.
Libertarian Milei's party has a minority in parliament but successfully used this mechanism last year when it obtained approval for two controversial decrees limiting funds for retirees and universities.
In an op-ed published Saturday in the daily La Nacion, Milei said the IMF deal would allow the government to pay off its debts to the BCRA.
“The agreement with the IMF seeks to restore the assets of the BCRA, so that inflation is only a bad memory of the past,“ he wrote.
Argentina has one of the highest inflation rates in the world, running at 84.5 percent year-on-year in January.
But since Milei took office promising to cut spending and address government debt, price rises have slowed, with inflation dropping from 211.4 percent in 2023 to 117.8 percent in 2024.
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